[Weekly] Market Return on StableCoin-based Strategies（22 Nov 2021)
We provide a weekly update of the platforms we track, based on the strategies discussed in Serenity Fund’s Overview of Stablecoin Investments and the periodical updates.
(Note: Yields derived from mining reward tokens are based on the prices of tokens on 22 Nov. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, and are actual yields over last week, compounded weekly to derive the APY.)
Quick analysis on 22 Nov:
- Risk Free Rate: 3.52%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 5.54%. There has been a minor downward correction in the market.
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 12%, much lower than last week’s 16%. This was in line with the declining market, firstly as CVX and CRV prices dropped and secondly more funds seeking protections in Curve and its derivatives.
- Other Stablecoin Platforms: the yields vary from 9% ~ 41%, and averaged 22%, down from last week’s 25%. Frax Finance’s liquidity pool on Uniswap V3 continued to lead this category, as other platforms narrowed the yields.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 11% to 104% yield now. Mirror Protocol had a systematic improvement in its yields as funds were drawn out of the Protocol, so the yields remained high. The penalty rates (the difference between a Curve pool on Ethereum and the same pool on a Layer 2 chain) Polygon and Arbitrum are 5.81%, 4.34% and 12.37% respectively, compared to 6.52%, 3.30% and 15.22% last week.
- Uniswap/Alpha: Uniswap earnings were average last week, for half stablecoin, half ETH pairs. As other EVM chains are getting more attention, trading activities and liquidity followed over.
- Binance Coin-Margined Funding Rate: funding rates remained around single digit to 10% in line with the market correction.
The above summary is a snapshot of what the market looks like over the last week and as of Monday. This is by no means the portfolio of any of Serenity Fund. Neither is the above table meant to be a ranking table nor to be exhaustive. There are various other defi protocols and products that can offer different risk and return exposures. Follow our Twitter below to have more timely and detailed information on the defi market.
(Serenity Team, 22 Nov 2021, Twitter: https://twitter.com/SerenityFund)